Moneysupermarket.com Group PLC
19 December 2007
Moneysupermarket.com Group PLC ('Moneysupermarket.com' or the 'Group'), the UK's
leading price comparison site, issues the following trading update relating to
the six month period ending 31 December 2007.
The Group commenced trading on 22 June 2007 and, accordingly, the financial
information below is presented on a pro forma basis to show what the financial
results would have been had the Group in effect been trading since 1 January
2006(1). The Directors believe that this will allow users of the financial
information to gain a better understanding of the underlying performance of the
business and is consistent with the presentation made in the prospectus. The
full year results will be presented on the same basis.
The Group indicated at the time of its interim results that trading in the
second half of the year had begun strongly. The Group now expects that revenue
and adjusted EBITDA(2) for the year will be no less than the current consensus
of analysts' forecasts which show revenues of £160.9 m and adjusted EBITDA of
£51.3m. Internet Revenues will have grown in excess of 60% in the year.
• Revenues in the Money vertical for the second half of 2007 will be
approximately 30% ahead of the same period last year. Visitor numbers have
increased over the corresponding period in 2006. Revenue per Transaction (RPT)
and Revenue per Visitor (RPV) have remained broadly consistent with the first
half of the current financial year. The impact to date of the volatility in
credit markets has been limited in the second half of 2007, although the Group
has noted that a number of providers have recently tightened their
underwriting criteria and raised their pricing to consumers. A number of
providers within the subprime secured lending space, who do not necessarily
have contractual relationships with the Group, have also withdrawn from the
market.
• Revenues in the Insurance vertical for the second half of 2007 will be
approximately 75% ahead of the same period last year. The Group has seen an
improvement in RPT over the period relative to the first half of the current
year.(3)
• Revenues in the Travel vertical for the second half of 2007 will be
approximately 85% ahead of the same period last year. Visitor numbers have
increased significantly over the corresponding period in 2006. RPT and RPV
have been broadly consistent with the first half of the current financial
year.
• Revenues in the Home Services vertical will be approximately 140% ahead of the
same period last year. Visitor numbers have increased significantly over
the corresponding period in 2006. RPT and RPV have been broadly consistent
with the first half of the current financial year.
• Revenues in the Intermediary business will be approximately 25% lower than the
same period last year but broadly in line with consensus.
The Group began operations in Germany in October 2007 with the launch of the
website www.icero.de. There will be no significant revenues recognised in the
current year but the Group will have invested approximately £0.6m in
establishing the business over the course of the second half of the year. The
German operations were launched with a motor insurance channel and initial
reactions have been relatively good. The Group intends to focus in 2008 on
refining its insurance offering to improve conversion and to extend its reach
into other verticals most notably Money.
Commenting, Simon Nixon, Monesupermarket.com CEO and Founder said:
'In the year that we listed on the London Stock Exchange we are happy to confirm
that we expect to report revenues and profits that meet expectations. Overall
the Group has had a very good year growing revenues and adjusted EBITDA in
excess of 50%. Second half trading has remained strong. We continue to have
enormous confidence in our business model and the benefit that price comparison
brings to consumers and providers. Uncertainty in the financial markets remains
and has been ever-present through most of the second half of the year. This has
had little impact on our trading to date but visibility continues to remain
limited.'
The Group also announces that it has appointed UBS joint corporate broker
alongside Credit Suisse.
Results for the year ended 31 December 2007 are due to be released on 26
February 2008.
Contact details
Moneysupermarket.com Group PLC
Paul Doughty Chief Financial Officer 020 7353 4200
Alexander Cowen-Wright Public Relations Manager 07802 455893
Tulchan Communications
David Trenchard 020 7353 4200
Celia Gordon Shute 020 7353 4200
(1) Assuming a debt free acquisition at 1 January 2006, from which date
intangible amortisation commenced, and a share option charge which reflects the
average charge over the vesting period of currently unexercised options.
(2) Adjusted EBITDA is calculated by the Directors following certain adjustments
to the historical compensation levels of the Group Directors and Senior
Managers. These adjustments reflect the Group Directors' and Senior Managers'
profit share, discretionary bonus, and employers National Insurance
Contributions from these historical compensation levels. Following the IPO these
elements of compensation no longer apply at these levels to these individuals
each of whom has entered a new service contract. The charge for share based
compensation relating to options issued pre-IPO have also been added back.
The Directors anticipate presenting financial information on a similar basis
until the final results for the year ended 31 December 2008. Thereafter the
need to present proforma Income Statement will not be required because the
relevant comparator period will be consistent with the current period.
(3) As noted in the prospectus the Group's visitor numbers during the period
between June 2006 and May 2007 were understated due to certain visitors not
being assigned a unique global user ID. The issue was resolved in May 2007 and
has not impacted visitor numbers in the Insurance vertical after May 2007. The
Group has been unable to quantify the exact extent of the understatement. It is
therefore unable to comment upon visitor numbers and RPV both relative to the
same period in 2006 and the first half of 2007.
This information is provided by RNS
The company news service from the London Stock Exchange
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